Creating and managing wealth for an SMSF client requires specialist understanding of products, markets and investment rules. SMSF Adviser brings you expert insight and high-level strategies so you can ensure the financial success of your SMSF clients.

Education and professional development is a fundamental component of providing your clients with quality advice, and standing out as a specialist in the market. SMSF Adviser brings you exclusive access to educational content to help you stay at the top of your game.

Up-to-date, specialised strategy is core component of an SMSF professional’s arsenal. SMSF Adviser analyses and interprets regulatory and legislative changes to ensure the SMSF sector is kept informed on the tips, tools and best practice for serving SMSF trustees.

SMSF Adviser also keeps professionals informed on what strategies cutting-edge businesses are using to keep ahead of the competition, including what technologies, marketing tools and HR strategies are getting the best results.

Associations join forces in anti-budget campaign

Several associations have joined forces to rally the government and point out the "fundamental flaws" in the government’s proposed superannuation policy.

The Australian Shareholders’ Association, Australian Investors Association, Small Independent Super Funds Association and the SMSF Owners’ Alliance have written to the prime minister, the treasurer and the assistant treasurer, outlining some fundamental issues with the government’s proposed super measures.

First, the associations believe the $1.6 million transfer balance cap applies retrospectively to transfers already made to pension accounts.

Advertisement

Advertisement

"If the transfer balance cap were to apply only to future retirees, savers can decide to change their retirement income strategy during their working life, working longer as necessary to ensure they have the standard of living in retirement they have anticipated," the associations stated.

"However, extending the cap to those who have already transferred all their savings into a pension account is retrospective in its impact."

Further, the associations believe the $500,000 cap on non-concessional contributions also has a retrospective effect.

"The new cap on on-concessional contributions should apply prospectively and not retrospectively back to 2007. In comments to a superannuation conference in Adelaide in February this year, the treasurer seemed to agree that retrospective changes to superannuation are unsettling and unfair," the associations stated.

In addition, the associations are requesting that upon retirement, individuals may make an additional non-concessional contribution above the $500,000 cap, provided their balance does not then exceed the transfer balance cap.

"There may be individuals who for whatever reason have been unable to make adequate concessional contributions but are prepared to top up their super using after tax funds (eg, from the sale of their house)," the associations stated.

"However, the new lifetime non-concessional contributions cap may restrict them from making their desired contribution even though this would not breach the overall balance transfer cap. This appears to be an unintended consequence and unfair on those who have been unable to make adequate concessional contributions."